40 million cars a year too many: the move towards electric cars and the expected decline of the automotive industry
The fate of car manufacturers is being decided by how well those in charge make the transition from combustion engines to electric batteries, says KPMG. By 2030, the excess production capacity for conventional cars will be equivalent to 200 disused assembly plants.
Car manufacturers are investing more than $200 billion in the electric car sector, which is more than NASA spent on putting the first man on the moon, according to analysts at KPMG. But there’s more to it than investing: you have to start out on the right track.
The consultancy group has just released a new research paper, simply titled Place Your Billion-Dollar Bets Wisely, which includes an estimate that battery-powered vehicles will account for 24-37% of the global market by 2030.
‘A massive structural change. New dominant positions will be established, and the old empires may fall. The stakes couldn’t be higher’, suggests KPMG.
“Conventional wisdom in the industry says that we’re moving swiftly to battery electric vehicles. But the coming years will be far more complicated and unpredictable than the conventional wisdom suggests. Companies will need to think hard about where they can carve out a winning positions, and where they make their billion dollar bets. roof.”
An endangered species
The alarmist study explains that the fate of the automotive industry depends on good management by those in charge of the different groups, in order to balance out the rise of electric power with the decline of fossil fuel engines. If electric vehicles reach a 30% market share in the next nine years, a critical excess production capacity will follow: around 40 million petrol/diesel vehicles or the equivalent of 200 disused factories per year.
By jumping in to electricity too early and too big, manufacturers risk being left without the vehicles they need to carry on making a profit. But falling behind in the electric market could spell the end for slowcoaches who cling to traditional fuels for too long, says KPMG.
‘Getting the timing wrong is very risky. If you’re out by five years, you’re likely to go bankrupt. There could be big crashes’, the study’s co-author Gary Silberg, head of Automotive Practice at KPMG US, told Bloomberg.
Geoffrey Heyninck
Chief Executive Officer
Conclusion
The study predicts that several of the world’s leading car manufacturers will experience significant challenges in managing this technological transition during the next decade.
That’s why it is extremely important for them to remain agile and to be able to count on reliable partners.
Gerelateerde artikels.
17 - 06 - 2021
Quarterly sales of electric vehicles at the same level as 2017 full year figures
JATO provides automotive business intelligence solutions that provide insights, analysis, data and specifications about global car markets. According to a recent study, there are positive signs for the automotive industry after a long period of uncertainty. During Q1 2021 alone, sales of pure electric passenger cars equated to the total sold throughout the whole of 2017. This Battery-Powered Electric Vehicle (BEV) boom is helping many brands offset declines registered in the traditional combustion engine market, where the impact of the pandemic can still be seen.
SALES
EV'S
25 - 11 - 2021
European Market Faces Rise in EVs But Decline In Overall Numbers
Even before the COVID-19 pandemic, the global and European car market had started changing in a very particular way. Although the worldwide pandemic stopped the market in its tracks, fortunately, by the end of 2020, the market had recovered and even showed a rise in overall numbers. However, so far, 2021 proved to be an exciting year that demands a detailed look. As always, the figures are not telling the whole story, and the recent European car market trend requires a closer examination.
EV'S
REGULATIONS
SALES
28 - 11 - 2022
Will soaring electricity prices sink EV adoption?
The electricity price, one of the main benefits of driving an electric car, has risen roughly 25% on a year-to-year comparison. Will this aggravating cost hamper EV adoption now that one of its most significant advantages is evaporating? Or does battery-powered driving retain an edge over fossil-fuel cars because of other conveniences? Unfortunately, there isn’t a one-size-fits-all answer to this problem.
EV'S
SALES
Koop van ons
Ontdek een nieuwe standaard in aankopen van auto’s. Onze expertise staat garant voor de hoogste kwaliteit en professionaliteit, afgestemd op de behoeften van uw bedrijf.
Verkoop aan ons
Ontdek waarom Quadriga de ideale strategische bondgenoot is van fabrikanten, importeurs en grote dealerbedrijven. Wij helpen u marktaandeel vergroten, cashflow verbeteren, productieplanning optimaliseren en overstock efficiënt afbouwen.